taxation is not that linear. it will reduce your taxable income so there are still many more factors down the line that will determine your final tax bill, and a reduction of $3k will still only affect your final tax bill for around $1k at most probably. but I guess that is a lot for some people. the moral of the story is if you're taking losses you're not making any money, that money is gone. you just owe slightly less tax on your other money.
sorry I was pretty harsh I've been flamed a lot in tax threads
Leo Cruz
wash sales don't apply to cryptos since they are property in the IRS's view and not securities. that doesn't mean you should exploit it though but you shouldn't worry about reporting it. also just track usd price with your buying and selling for every sale and you can either do it yourself or spoonfeed your accountant and get a lesser bill from them. if you are holding decent coins then you should not sell and wait for a bull market. even hold shitty coins if you can afford it, odds are some idiot will buy them in the next bull run.
Caleb Allen
I ran everything through bitcointax, got a form, imported it into TurboTax Deluxe, and it calculated my taxes automatically. Granted, I made money instead of losing, so I ended up owing taxes. But if I had lost money, it would have automatically calculated that and given a tax credit
If you go this route, I recommend you pay a little extra for the audit defense in case you do get audited
Christopher Brooks
Of course, I am relatively confident in my hold's, was only thinking of selling temporarily to get that tax benefit.
Thanks for the advice.
Christian Richardson
benefit is slim to none unless you literally need extra cash to survive and not worth the risk of dumping a good bag of cryptos that will be worth much, much more in a few years
Jason Turner
It all depends on what you mean by "temporarily." Read up on wash sales: investopedia.com/terms/w/washsale.asp There's a rule that you have to wait a certain amount of time to buy back something you've deducted as a loss on your taxes.
Anthony Thompson
not applicable to cryptos but abusing it will probably put you in a precarious position
